Live Markets: Energy shorts rise as sector stumbles

Vital Energy (Canada)

18/12/2023 18:48

* 
      Nasdaq, S&P 500 gain, DJI ~flat
    

        * 
      Comm Svcs leads S&P 500 sector gainers; real estate sole
loser
    

        * 
      Dollar edges red; bitcoin down >1%; gold up; crude gains
~2%
    

        * 
      U.S. 10-Year Treasury yield rises to ~3.96%
    

  
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    ENERGY SHORTS RISE AS SECTOR STUMBLES 
    Short bets on struggling energy stocks have risen along with
expectations for the recent fall in crude oil and other energy
prices continuing into next year, according to an analysis by
S&P Global Intelligence.
    The energy sector  .SPNY  which is down nearly 7% for the
quarter and the sole decliner for this period among the 11 major
S&P sector groups, saw short interest increase by 28 basis
points (bps) to 3.71% at the end of November from 3.43% at the
end of October. According to S&P, the only sector that saw a
larger jump was communication services  .SPLRCL , with a rise of
29 bps for the same time period.  
    Short interest in the energy sector at the end of November
was its highest since October 2022, according to S&P. Crude oil
prices  CLcv1   LCOcv1  have struggled, recently hitting a
six-month low largely on worries about oversupply and waning
demand.   
    But oil-related companies were not the only ones to see a
climb in short interest, said S&P, as it increased in all of the
most-shorted energy sub-sectors, such as coal and consumable
fuels, which surged by 213 bps to 7.17%. 
    Among individual names in the sector, Vertex Energy
 VTNR.O , Vital Energy  VTLE.N  and Transocean  RIG.N  were the
most shorted. 
    The energy sector is up more than 1% on Monday, however, as
crude prices rise following disruptions to maritime trade in the
Red Sea from Yemeni Houthi attacks on ships. 
    
    (Chuck Mikolajczak)
     *****    
    
    
    FOR MONDAY'S OTHER LIVE MARKETS POSTS:
    
    MARKETS PARTY WITH POWELL'S PROJECTED PRE-EMPTIVE PIVOT, BUT
PROBABLY NOT BEST TO PILE IN - CLICK HERE
    
    GOLDMAN SACHS INCREASES ITS S&P 500 YEAR-END 2024 TARGET TO
5,100 - CLICK HERE
    
    THE COAL IN HOMEBUILDER STOCKINGS IS WARMING UP A TAD -
CLICK HERE
    
    U.S. STOCKS OPEN HIGHER AS INVESTORS DECIPHER THE FED -
CLICK HERE
    
    S&P 500 INDEX: MIGHT ITS FURNACE GO ON THE BLINK JUST AS
WINTER SETS IN? - CLICK HERE
    
    A ROTATION INTO EUROPEAN EXCHANGES IN 2024 - CLICK HERE
    
    FED'S DOVISH PIVOT TO UNLOCK UPSIDE IN GOLD - GS - CLICK
HERE
    
    STOXX DIPS, SHIPPERS AND ENERGY RISE - CLICK HERE
    
    EUROPE EYES WEAK START - CLICK HERE
    
    MARKETS PLAY 'WILL THEY OR WON'T THEY' ON BOJ - CLICK HERE 

    
    
    
    
    
    

 (Terence Gabriel is a Reuters market analyst. The views
expressed are his own)